In the dynamic landscape of finance, the role of Chief Financial Officer (CFO) stands as a pinnacle of success for qualified accountants. As the strategic financial leaders of an organisation, the CFO plays a critical role in shaping business decisions. For aspiring finance individuals eyeing the coveted CFO role, the journey involves strategic career choices and continuous development. This post provides some of the diverse routes qualified accountants can take to ascend to the role of CFO.
1. Excel as a Financial Analyst
One of the foundational steps toward becoming a CFO is excelling in roles such as a financial analyst. This involves a deep understanding of financial data, trend analysis, and the ability to communicate insights effectively. As a financial analyst, individuals can demonstrate their analytical prowess, a skill highly valued in the C-suite.
2. Specialise in Corporate Finance
Transitioning to roles in corporate finance is a strategic move. Involvement in and mergers and acquisitions (M&A) provides a holistic financial perspective and this can be gained in-house or within a financial consulting firm. Those who have gained their accounting qualification from the larger accounting firms can consider some time in the financial advisory, transaction services or corporate restructuring teams to gain this skillset.
3. Gain International Experience
In an increasingly globalised business environment, CFOs are often required to navigate international markets. Obtaining experience in international finance or working in diverse geographical locations enhances a candidate’s versatility. For most Brits, this is uncommon and uncomfortable but for those who push for these opportunities, the greater understanding of different regulatory environments and adapting to varied business cultures sets them apart from their peers as a global financial leader.
4. Develop Leadership and Management Skills
CFOs are not only financial experts but also effective leaders. Transitioning from purely technical roles to managerial positions, such as finance manager or director, allows accountants to hone their leadership skills. Building and leading high-performing teams is a crucial aspect of the CFO role.
5. Technical Accounting Knowledge
Where most aspiring CFO’s often fall down is their desire to stay away from the often perceived “boring” technical side of finance and accounting. Although as a CFO, you will likely have a strong Financial Controller or 3rd party advisor providing you with this technical info, experience of having prepared it yourself is often crucial to elevating yourself into the top spot. For those who qualified as accountants in audit, this is a step they often overlook. This experience can be gained as a first move out of practice or as a secondment much later on but do make sure you tick that box!
6. Pursue Advanced Education and Certifications
Furthering education through an MBA or obtaining certifications like the Chartered Financial Analyst (CFA) qualification can set candidates apart. These qualifications provide a broader business perspective and signal a commitment to continuous learning—a trait highly valued in executive roles.
7. Leverage Technology Skills
In the digital age, CFOs are expected to be tech-savvy. Developing skills in financial technology (FinTech), data analytics, and enterprise resource planning (ERP) systems positions accountants as forward-thinking financial leaders. The ability to harness technology for strategic financial decision-making is a valuable asset.
8. Network Strategically
Building a robust professional network is essential for career growth. Attend industry conferences, join professional organisations, and leverage online platforms like LinkedIn to connect with peers and mentors. Networking provides exposure to industry trends, potential opportunities, and insights from seasoned financial leaders. Networking is not about helping you secure your next move, its about securing the one after that, and the one after that …….
9. Showcase Business Acumen
CFOs are not just financial experts; they are also astute business strategists. Developing a deep understanding of the industry in which one works and staying informed about economic trends is crucial. Being able to align financial strategies with broader business goals positions an accountant for success in the CFO role.
10. Be Patient!
Being such a critical role but business owners, investors and exec teams, the CFO recruitment process can be long and often requires candidates to have been a proven CFO for other organisations. The best route to CFO is often done through your own network where individuals have seen your abilities and know that you will be a successful CFO without requiring you to demonstrate you have done the position for four other organisations previously. Bide your time and work with your current CFO to forge a strong relationship to put you in pole position for when they leave.
Conclusion
Becoming a CFO is a journey that involves strategic career choices, continuous learning, and a commitment to professional development.
As the financial landscape evolves, so do the opportunities for accountants to rise to the ranks of CFO. By making deliberate and strategic career choices, qualified accountants can chart a course toward the executive suite, contributing to the success and growth of their organisations.